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Len [333]
2 years ago
5

Sterling Corporation prepares its financial statements in accordance with IFRS. Sterling paid $10,000 of interest during the yea

r. Sterling must report these finance costs on the statement of cash flows
Business
1 answer:
kozerog [31]2 years ago
5 0

Answer:

The Option B is correct.

Explanation:

The International Financial Reporting Standards gives two option to report the finance costs in the statement of cash flow. The first option the firm has is that the finance cost must be reported in the operating activities because these interest cost arise because firm borrows money to finance its operations. The other option is the firm has option to include it in the financing section of the statement of cash flows because it might had invested in stocks which must be deducted from the financing activities.

Whatever the option firm choses must relate to the facts and must increase the truth and fairnes of the statement and it must also applied consistently in future as well. US GAAP says that the finance cost must be deducted from the operating activities in the statement of cash flows.

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The eventual result in the U.S. v. Microsoft case was: a. Bill Gates was sentenced to one year in prison for violations of the S
liraira [26]

Answer: C. The court concluded that Microsoft violated the Sherman Act

Explanation: The case between United States v. Microsoft Corporation which took place at the

United States Court of Appeals for the District of Columbia Circuit during the period February 26–27, 2001 and was finally decided June 28, 2001.

It was decided by the District Court that Microsoft violated the Sharma Antitrust Act of 1890.

4 0
3 years ago
On January 1, 2019, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and insta
ruslelena [56]

Answer:

D. $6,000

Explanation:

The book value of a new asset includes the purchase price and other related costs that make it ready for use. For Woodstock company, the book value of the new machine will be the buying price of 40,000 plus 1000 transport costs.

Book value = $41,000

The straight-line depreciation method charges equal amounts throughout the life of the asset.

The depreciable amount = asset value - salvage value

=$41,000 - $5000

=$36,000

The depreciation rate = 1/6 x 100

=16.66 %

Annual depreciation = 16.66% x $36,000

=16.66/100 x $36,000

=0.16667 x $36,000

=$6,000

7 0
3 years ago
HOW IMPORTANT IS INNOVATION TO ENTREPRENEURSHIP?
faust18 [17]

Answer:

   Successful innovation allows you to add value to your business so that you can increase your profits—if you don't innovate well, your business will plateau. Innovation helps you stay ahead of the competition. With globalization and a rapidly changing market, there are more competing businesses than ever before.

<h2><u>Hope This Helped!</u></h2>

8 0
2 years ago
Mr. A owned 75% of the voting stock and 85% of the nonvoting stock of Corporation Y. Mr. A transferred property with a fair mark
Lena [83]

Answer:

$0

Explanation:

Since Mr. A already owns 75% of common stock (and 85% of nonvoting stock), the extra 5% will result in a total of 80% (and 90%), that means that he cannot recognize any loss or gain resulting from this transaction. This applies to all stockholders that own at least 80% of a company's stocks and transfer property in exchange for more stocks.

5 0
3 years ago
The cost to produce tooth paste has increased by 1000%. This has caused the price to quadruple, but the demand has remained the
erica [24]

Answer:

Inelastic

Explanation:

In the given question,the cost to produce the toothpaste has increased, which led to the increase in the price of the toothpaste significantly. But there is no change in the demand of the toothpaste.

Hence, this product is inelastic.

In the inelastic demand, the demand of the product does not change with any variation in the price of the product.

6 0
3 years ago
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